Day: April 28, 2024

The cash book shows a bank balance of £5,675 overdrawn at 31 August 2023

It is subsequently discovered that a standing order payment for £125 has been entered twice, and that a dishonoured cheque for £450 has been debited in the cash book instead of credited.

The correct bank balance should therefore be?

Select ONE answer:

1. £5,100 overdrawn
2. £6,000 overdrawn
3. £6,250 overdrawn
4. £6,450 overdrawn

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Balance b/d £(5,675) Add: standing order £125 Less: dishonoured cheque (450 x 2) worth (£900) = £(6450)

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